Recent research has uncovered a significant financial boon for the UK, with Graduate Route visa holders contributing £70 million to the national exchequer within the scheme’s first full year. Contrary to previous assertions suggesting financial losses, this sum stands as the net benefit to the UK.
Released as part of a comprehensive report examining the fiscal implications of the Graduate Route visa, these findings represent the first detailed analysis of its kind since the scheme’s start. The report, a collaborative effort between the Higher Education Policy Institute, Kaplan International Pathways, and the National Union of Students, precedes the forthcoming presentation of findings by the Migration Advisory Committee (MAC).
In the tax year 2022–23, an estimated 66,410 Graduate Route Visa holders resided in the UK, comprising 56,460 international graduates from UK higher education institutions and 9,950 dependents. Notably, the ratio of dependents to visa holders is declining, a trend accelerated by recent regulatory adjustments in January 2024. The UK government’s report on April 30th highlighted an 80% reduction in dependent ratios, underscoring the evolving landscape.
The financial benefits to the UK from hosting Graduate Route visa holders primarily manifest through higher tax revenues, estimated at £588 million for 2022–23. This figure, however, only captures immediate gains and excludes broader, longer-term advantages, such as visa holders transitioning to the Skilled Worker route and contributing further to the economy.
Conversely, an in-depth assessment of the costs borne by the Exchequer for Graduate Route visa holders, including public service provision, tallies an estimated £517 million for 2022–23. This equates to approximately £9,160 per main Graduate Route visa holder.
The net outcome of these financial considerations reveals a total benefit of £70 million to the UK Exchequer within the scheme’s inaugural year, equating to £1,240 per international graduate. This positive balance definitively refutes claims of financial detriment to the UK, emphasising the scheme’s viability and economic contribution.
